Which statement is TRUE?
A) The financial account balance is the negative of the current account balance.
B) A country's balance on the current account will be less than its balance on financial account if exchange rates are allowed to float freely.
C) If the market for a nation's currency is in equilibrium,a financial account surplus necessarily means a current account surplus.
D) Exchange rates don't affect either financial accounts or current accounts.
Correct Answer:
Verified
Q283: If the exchange rate for the euro
Q288: The exchange rate is determined in the
Q289: If the current account is in surplus,
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Q292: Adopting a floating exchange rate regime:
A) makes
Q293: A country's balance of payments on financial
Q298: An advantage to floating exchange rates is
Q299: When a currency becomes more valuable in
Q301: If a country's currency appreciates,all other things
Q303: Real exchange rates are those that are
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